In honor of Veterans Day on Nov. 11, the state of Michigan extended its gratitude to current and former military members by reminding them of the special benefits they may be entitled to receive through the Michigan Department of Treasury.

"On Veterans Day, we honor the service and sacrifice of those who have stepped up for our country in uniform," Gov. Gretchen Whitmer said. "To ensure our service members and veterans have the resources they need to succeed, the State of Michigan provides scholarships and tax assistance to both current and former military members as a token of appreciation for their service. I want to thank those who are serving, have served, and will serve, and I encourage them to explore the benefits and relief we provide."

Current and former military members may be eligible to receive:

• Military Pay Tax Exemption. Military pay is exempt from Michigan tax, including military retirement benefits and exit and separation pay.
• Children of Veterans Tuition Grant. This program provides undergraduate tuition assistance to the children of Michigan veterans who were totally and permanently disabled, missing in action or died while serving. Students may receive scholarship assistance for up to four academic years for a total of up to $11,200.
• Disabled Veterans Property Tax Exemption. A property tax exemption for real property used and owned as a homestead as outlined in state law.
• Principal Residence Exemption (PRE) for Active Duty Military Personnel. Property owners can retain a PRE while on active duty if their property is rented or leased.
• Property Tax Relief during Active Military Service. Property owned by a serviceperson cannot be sold to pay delinquent property taxes during a tour of active duty.
• Summer Property Tax Deferment. A serviceperson, veteran or widow or widower whose income outside of military compensation is no more than $7,500 per year may be eligible for a summer property tax deferment.
• Federal Military Spouses Residency Relief Act. The spouse of an individual in the military may not be subject to the state's taxation if they are a nonresident of the state, the service member is present in the state due to military orders, the spouse is solely in the state to accompany the service member, and the spouse maintains a domicile in another state. This act was amended in December 2018 to alternately allow military spouses to elect the same state of domicile as their service member spouse, even if they are not present in that state.

"The Michigan Department of Treasury will work closely with our military members past and present to ensure they get the tax benefits and other resources they deserve," State Treasurer Rachael Eubanks said. "If you have questions about any of these benefits, please contact us so we can talk about your options."

Individuals with questions about tax relief and other benefits for current and past military members should go to Michigan.gov/Treasury and click on "Contact Us." Program-specific phone numbers can be found on the "Contact Us" webpage. 

​This year, in honor of Veterans Day, the Veterans Employee Resource Group partnered with Supporting Women at Treasury to bring an important exhibit to our office.

In the lobby of the Austin Building, you will see banners, panels and even a couple uniforms from Michigan women who served in the military beginning in WWII. Meaghan Bergman, program manager of Michigan Women Forward, shared how the traveling display came to be and why it's important to honor these women in a short video. 

Members of the public may visit this Veterans Day tribute at the Austin Building, 430 W. Allegan St., from 8 a.m. to 5 p.m. Monday through Friday through November.

Cities, villages and townships experiencing financial struggles can now apply for a grant to help fund special projects and free up tax dollars for important services.

Applications are now being accepted for the Financially Distressed Cities, Villages, and Townships (FDCVT) grant program. Municipalities interested in applying for an award must submit applications to the state Treasury Department by 11:59 p.m. on Tuesday, Jan. 18, 2022.

All cities, villages and townships experiencing at least one condition of "probable financial distress," as outlined in the Local Financial Stability and Choice Act, are eligible to apply for up to $2 million. A total of $2.5 million in funding is available for Treasury to award through the FDCVT grant program for the 2022 fiscal year. 

Grant funding may be used to pay for specific projects or services that move a community toward financial stability. Preference will be given to applications from municipalities that meet one or more of the following criteria:

• A financial emergency has been declared in the past 10 years.
• An approved deficit elimination plan for the General Fund is currently in place.
• Two or more conditions indicating "probable financial distress" currently exist.
• The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to www.michigan.gov/revenuesharing.

The Michigan Education Savings Program (MESP) is one of the nation's premier college savings plans, according to a recent analysis of state-administered 529 plans by Morningstar Inc.

MESP was one of only three plans to receive a "Gold" rating. Morningstar rates plans based on four pillars: Process, People, Parent and Price.

"To be called one of the 'best and brightest' by Morningstar is a tremendous honor and an important endorsement from a respected third-party validator that MESP is a great investment for Michiganders," MESP Administrator Diane Brewer said. "Our No. 1 goal is to deliver to families the best plan to help their loved ones pursue their dreams through higher education. MESP account owners can rest assured that we're meeting that benchmark."

Across the four key pillars, Morningstar looked for the following in each of the 529 savings plans it evaluated: a well-researched asset-allocation approach; a robust process for selecting underlying investments; an appropriate set of options to meet investor needs; strong oversight from the state and investment manager; and low fees.

Gold-rated plans embody most or all of these attributes.

In its review, Morningstar identified MESP as "Summa Cum Laude," describing it as a "top notch plan" that "set the curve for their peers, offering exceptional investments while emulating savvy stewardship."

Managed by TIAA-CREF Tuition Financing Inc. on behalf of the Michigan Department of Treasury, MESP has earned silver and gold ratings from Morningstar each year since 2012.

MESP, sold directly to families that are saving for college, offers 18 investment options. The plan, which marked its 20th anniversary last November, has more than 290,000 accounts with total assets exceeding $7.6 billion.

MESP is one of three Michigan Section 529 plans, named after the section of the Internal Revenue Code that allowed for their creation. Each plan offers Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.

MESP can be used at any eligible college, university or trade school in the nation and some abroad for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, supplies and equipment required for enrollment.

More information about MESP is available at MISaves.com or 877-861-6377.

As Michigan evolves into a knowledge-based economy, Michigan College Access Network (MCAN) and Michigan Department of Treasury are working to ensure students achieve the college certificates and degrees that will allow them to reach lifetime economic and intellectual goals.

It "takes a village" to increase educational postsecondary opportunities for low-income students, students of color, and first-generation college-going students; MCAN recently presented Treasury with the Beacon Award, signifying Treasury's success in uniting and partnering with programs, activities and operations in support of postsecondary attainment.

Accepting the award for Treasury at MCAN's 10th annual conference was Treasury's Director of the Office of Postsecondary Financial Planning Robin Lott, with Executive Director of the Michigan Education Trust Diane Brewer and Director of Student Scholarships, Grants and Outreach Diann Cosme.

"Receiving the Beacon Award confirms all of the collaboration that we've done within state government, and externally, to help families access post-secondary education," said Robin. "We are very honored and excited to receive this recognition for the hard work that staff does."

The theme of this year's MCAN conference was "Michigan's Recovery: Equity, Education, and Economy" and explored how our state can emerge from the pandemic with a greater focus on closing educational gaps and creating equal opportunities for all residents. MCAN's organizational goal is based on Governor Whitmer's Sixty by 30 program and focuses on increasing the percentage of Michigan residents with degrees or postsecondary certificates to 60% by the year 2030.

"We are very proud to provide an assist to the governor's initiative," Lott commented. "Encouraging families to participate in the 529 college savings platform, supporting the FAFSA priority deadline and Dash for Cash incentive, providing scholarships and grants, and highlighting new programs like Futures for Frontliners and Reconnect all help move the needle towards Sixty by 30.

"Nelson Mandela said, 'education is the most powerful weapon which you can use to change the world'," Robin added. "And I will ask educators, advocates and parents to continue to change the world as we work together for an equitable future for all Michigan children." ~

Image: Treasury's Robin Lott, Diane Brewer, Diann Cosme, Jennifer Maurer, Felicia Pelto, and Emily Hurtado-Arboleda, with MCAN Executive Director Ryan Fewins-Bliss (courtesy of MCAN).

The Michigan Department of Treasury recently partnered with the Michigan County Road Association’s Accounting Work Group to create an exposure draft of the proposed 2021 Road Commission Accounting Manual. Extensive updates are under consideration when compared to the 2010 Road Commission Accounting Manual.

Any individual or organization that would like to submit comments regarding the proposed changes to the Road Commission Accounting Manual should do so in writing by Dec. 9, 2021. Correspondence should be submitted to lafd_audits@michigan.gov.

For other manuals and information related to local units of government, please go to michigan.gov/cefd. 

Related Documents:

• RC manual Exposure Draft.pdf